Understanding Foreclosure Defense

The economic troubles of the last few years have left an increasing number of Americans in dire financial straits—particularly homeowners who have found themselves locked into adjustable rate mortgages or other subprime loans. Decreased wages or increased interest rates can make it difficult for even the most financially cautious individuals to stay up-to-date on their property payments. Foreclosure is what happens after borrowers fall several payments behind on their mortgage payments and a lender initiates a legal process to sell off one’s home. The process begins when a person receives a court summons that outlines the lender’s complaint or reason for seeking legal action. From this moment on, time is of the essence; if a homeowner delays in responding to the summons, he or she may forfeit valuable legal rights.

Our Foreclosure Lawyers Review All of Your Options

When a homeowner comes to our office looking for a foreclosure lawyer, often they are behind on their mortgage payments or already in foreclosure. We make sure to take our time and evaluate their all their options. There are two key options are available to stop a foreclosure: (1) opposing the lender’s foreclosure proceeding in state court (this is referred to as Foreclosure Defense) or (2) filing for bankruptcy in federal court. When filing for bankruptcy, in most cases, a debtor receives the protection of the automatic stay, which prohibits creditors from continuing a foreclosure action. One of the main advantages to filing Chapter 13 bankruptcy is that one may benefit reorganize one’s finances, thus allowing one to catch up on missed payments interest-free over a three-to-five-year period through a court ordered payment plan while staying current with mortgage payments going forward.

Chapter 13 Bankruptcy

Chapter 13 bankruptcy also gives homeowners with no equity in their property (the first mortgage balance exceeds the current fair market value of the home) an additional opportunity. If the debtor’s home has no equity, the debtor may have the ability to remove second mortgage in Chapter 13 bankruptcy proceeding (a lien strip). Removing a second mortgage is typically done through an adversarial proceeding in the bankruptcy court. If the homeowner is successful the proceeding, the court will order that the second mortgage be removed from the property. Upon removing the second mortgage, the debt will be treated like any other unsecured debt.

At the Law Offices of David I. Pankin, our foreclosure lawyers have 18 years of experience assisting homeowners facing financial difficulty. Upon contacting us, a foreclosure attorney will review your case as well as evaluate your foreclosure defense and mortgage modification options. We will also look to see if a lender has violated the Truth in Lending Laws or has committed offenses detailed in New York State’s Unfair and Deceptive Practices Act. If you are struggling beneath the threat of foreclosure or just finding it hard to make your mortgage payments on time, please do not hesitate to contact our office by phone at 888-529-9600 to arrange for a free, initial consultation. Remember, “bankruptcy is not the end, it’s a new beginning.”

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